Bank to raise $2.2 billion

BRIEFING

June 3, 2009

NEW YORK - Morgan Stanley said Tuesday that it will raise $2.2 billion through a stock offering as part of a plan to satisfy preconditions for repaying a government loan it received last fall amid the deepening credit crisis.

Morgan Stanley priced the offering at $27.44 per share, an 8.2 percent discount from Monday's closing price of $29.89. Based on the price, Morgan Stanley will issue about 80.2 million shares of common stock.

The government has said that in order for a bank to repay the money it received under the Troubled Asset Relief Program, it must be able to access public equity markets. Hundreds of banks received funds as part of the program as the government tried to bolster the stagnant credit and lending markets.

Morgan Stanley received $10 billion as part of the $700 billion program.